Starting a Business: A Focus on Construction Permits, Electricity Access, and Property Registration

Authors

  • Irsan Hardi Economic Modeling and Data Analytics Unit, Graha Primera Saintifika, Aceh Besar 23371, Indonesia
  • Xuan-Hoa Nghiem Faculty of Economics and Management, International School, Vietnam National University, Hanoi 100000, Vietnam
  • Sunil Suwal Research Institute of Economics and Management, Southwestern University of Finance and Economics, Sichuan 610074, China
  • Edi Saputra Ringga Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu 21030, Malaysia
  • Rio Marsellindo School of Economics and Management, Harbin Institute of Technology, Shenzhen 518055, China
  • Ghalieb Mutig Idroes Energy and Green Economics Unit, Graha Primera Saintifika, Aceh Besar 23371, Indonesia

DOI:

https://doi.org/10.60084/ijma.v2i2.245

Keywords:

Ease of doing business, Starting a business, Dealing with construction permits, Getting electricity, Registering property

Abstract

Efficient processes for construction permits, electricity access, and property registration are critical to fostering entrepreneurship and economic growth. Delays, high costs, and bureaucratic inefficiencies in these areas pose significant barriers to business start-ups. This study examines the impact of these factors on starting a business, highlighting their role in shaping formal economic activity and business dynamics. By applying methods such as the Generalized Linear Model (GLM), Robust Least Squares (RLS), and Quantile Regressions (QR) to data from 213 countries and cities featured in the World Bank’s Doing Business 2019 (DB19) and Doing Business 2020 (DB20) reports, this paper demonstrates that all three factors significantly and positively impact starting a business. Notably, a comparison of results between DB19 and DB20 reveals that the magnitude of these influences decreased in DB20, with some effects becoming less significant or even insignificant compared to DB19. This phenomenon is most apparent in countries with middle-to-high starting a business scores. The findings suggest that shocks like the COVID-19 pandemic may have reduced the relevance of these factors in DB20, as the increased risks associated with starting a business during the pandemic likely overshadowed these considerations. Overall, the results indicate that streamlining construction permits, improving electricity access, and simplifying property registration processes could significantly enhance entrepreneurial activity, drive economic growth, and foster a more dynamic business environment.

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2024-12-29

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Hardi, I., Nghiem, X.-H., Suwal, S., Ringga, E. S., Marsellindo, R., & Idroes, G. M. (2024). Starting a Business: A Focus on Construction Permits, Electricity Access, and Property Registration. Indatu Journal of Management and Accounting, 2(2), 105–117. https://doi.org/10.60084/ijma.v2i2.245

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Vol. 2 No. 2 (2024): December 2024

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Copyright (c) 2024 Irsan Hardi, Xuan-Hoa Nghiem, Sunil Suwal, Edi Saputra Ringga, Rio Marsellindo, Ghalieb Mutig Idroes

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